Denver City Council will consider giving the brewery a $1 million loan and also is looking at rezoning a two-block area on Brighton Boulevard between 33rd and 35th streets. The brewery would eventually produce as much as 250,000 barrels of beer a year.

New Belgium, the state’s largest craft brewer, produced 764,424 barrels in 2012, and Oskar Blues was second in the state at 87,750 barrels.

Representatives from Great Divide weren’t available for comment.

The brewery owned and operated by Brian Dunn[4] opened in Denver’s Ballpark neighborhood in 1994. Over the years it has received $940,000 in city loans, two of which have been paid off. A $175,000 loan in 2008 that was increased to $336,000 is still on the books.

“They are a good borrower with us,” said Derek Woodbury, spokesman for the Office of Economic Development.

The proposed 10-year, $1 million loan will be pitched to the City Council Wednesday at at the Business, Workforce & Sustainability Committee.

The brewery’s two-phase expansion is expected to create as many as 29 new jobs and will be completed by 2015. It will increase Great Divide’s production from 32,000 barrels a year to an initial capacity of 100,000 barrels and eventually between 200,000 and 250,000 barrels, according to the bill request to be considered by City Council.

It would redevelop the 190,539-square-foot lot at 3403 Brighton Boulevard into a brewery and taproom that will “serve as a community gathering location and a tourist destination,” according to documents filed with the city.